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Unit economics & SaaS
ARR and MRR
Monthly recurring revenue is the subscription revenue normalised to a month; annual recurring revenue is twelve times that. The run rate of the subscription base, excluding one-time fees.
Owned by: AnalystTest band: Analyst
The formula
ARR = MRR × 12
In practice
ARR is a snapshot, not a period. Bookings, ARR, and recognised revenue are three different numbers; say which one you mean.
The kind of thing the test asks
- MRR is $40k. ARR is…
More in unit economics & saas
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